Analysis of global financial crisis and its impact on Indian economy

Global Financial Crisis is among the greatest financial challenges to the world economy which is originated in United States of America. The global economic slowdown is unprecedented in scale and has severe implications on policy formulation among emerging market. Currently India has one of the largest Developing countries in the world. Strong economic growth in the last decade combined with a population of over a billion makes it one of the potentially largest markets in the future. This paper provides an overview of global financial crisis (GFC) and its impact on the Indian Economy. The present study makes an attempt to identify the immediate impact of the financial crisis on Indian economy in terms of selected economic indicators. The study examines the trends in export, import, gdp growth rates etc in the context of Indian economy against the background of global financial crisis and subsequent global recession. India is considered to be highly vulnerable to a crisis like this because of its greater integration with the rest of the world. There are some reasons to believe that the financial crisis affected Indian economy adversely by slowing foreign remittances, foreign investment, adverse bop position etc. However, Indian economy shows the symptoms of rapid recovery from the sudden set back it had to undergo during 2008–09 and future trends also.